DataMeds AI — Second Quarter 2026 Earnings Summary

Financial Performance

• Net revenues for the quarter ended June 30, 2026, were $1.779 million, representing a 14% sequential growth compared to Q1 2026 and a decrease from $7.79 million in the same quarter of 2025.
• Gross profit was $182,204 for the quarter, down from $505,752 in Q2 2025.
• Net loss for the quarter was $18.363 million, an increase from $6.672 million in Q2 2025, driven by debt extinguishment expenses and general and administrative costs.
• Net loss per share was $7.13 on 2.574 million weighted average shares outstanding, compared to a loss of $5.50 per share on 1.235 million shares in Q2 2025.
• Cash and cash equivalents increased to $2.456 million as of June 30, 2026, from $42,571 as of December 31, 2025.
• Total liabilities rose to $52.26 million as of June 30, 2026, from $42.91 million as of December 31, 2025.
• Stockholders' equity deficit widened to $(19.50) million as of June 30, 2026, from $(12.45) million as of December 31, 2025.
• Accumulated deficit increased to $(137.14) million as of June 30, 2026, from $(111.03) million as of December 31, 2025.
• Accounts payable increased to $12.61 million as of June 30, 2026, from $11.67 million as of December 31, 2025.
• Convertible notes payable, net of debt discount, appeared as a new liability of $12.10 million as of June 30, 2026, compared to zero in the prior period.
• Current portion of debt obligations, net of discount, decreased to $7.10 million as of June 30, 2026, from $10.89 million as of December 31, 2025.
• Total operating expenses were $7.53 million for the quarter, up from $6.01 million in Q2 2025.
• General and administrative expenses were $7.06 million for the quarter, up from $4.86 million in Q2 2025.
• Interest expense, net, was $1.56 million for the quarter, up from $1.18 million in Q2 2025.
• Loss on extinguishment of debt was $8.88 million for the quarter.
• Loss on contract termination fee was $766,394 for the quarter.

Guidance and Future Outlook

• The company expects to launch the "Health Lives Here" consumer app with NFL Alumni Health in September 2026.
• The company plans to launch the medical food "Forzet" targeting weight loss patients in the second half of 2026.
• The company intends to acquire a CLIA lab to offer direct-to-consumer testing and integrate data into the EinsteinRx AI platform.
• The company plans to perfect the launch of a drone service for medical product delivery with biometric confirmation by Q4 2026.
• The company anticipates closing the "Datavault Transaction" in the second half of 2026.
• The company intends to move patient data onto the blockchain protected by the Datavault AI license to allow patients to participate in revenue generated from health data sales.

Business Segments and Product Lines

• The pharmacy-focused division was rebranded under the Corexa Health umbrella.
• Corexa Pharmacy launched Tollo Health products Tollovid® and Galectovid™.
• A joint venture with KareRx added Electronic Benefits Verification (EBV) services and access to 200,000 patient lives, beginning to provide material revenue to Corexa Pharmacy.
• The company made companion medical food "Forzet" available for the dietary management of muscle associated with weight loss therapies.
• The company is consolidating patent-protected blockchain, biometrics, and pharmaceutical-adjunct product intellectual properties to deliver the "Health Lives Here" app.
• The company entered an agreement to expand the Datavault AI PharmacyChain™ license to all of commercial healthcare.
• The company acquired QOLPOM patent portfolios regarding biometric confirmation of drug consumption via wearables and biometric confirmation of drug delivery recipients via drones.
• The company entered an agreement to acquire a controlling interest in Tollo Health.
• The Neuritek Therapeutics, Inc. pending acquisition was terminated in May 2026.

Market and Competitive Landscape

• The "Health Lives Here" app targets patients on or contemplating GLP-1 agonist medications in rural communities via local independent pharmacies.
• The company aims to provide a seamless patient experience through telemedicine, a consumer app, and education for local independent pharmacists regarding pharmaceutical-adjunct products.
• The company intends to correlate wearables data with pharmacodynamic drug response using its AI platform.

Risks and Challenges

• The company implemented a 1:50 reverse stock split in May 2026 to partially address NASDAQ delisting risk.
• The company recorded a significant increase in net operating loss due to expenses associated with debt extinguishment.
• The company faces the risk of maintaining compliance with Nasdaq listing standards.
• The company has a substantial accumulated deficit and negative stockholders' equity.
• The company has high accounts payable relative to cash on hand.

Management Commentary and Tone

• Interim co-CEO Gerald Commissiong expressed excitement about progress toward the "Health Lives Here" app launch and the consolidation of healthcare infrastructure.
• Management stated intentions to engage patients through telemedicine and a consumer app while educating pharmacists on products intended to mitigate drug side effects.
• Management highlighted the goal of allowing patients to "opt-in" to have their healthcare data fed into the EinsteinRx AI platform for unique insights.
• Management noted the intention to allow patients to participate in revenue generated through the sale of their health data via blockchain tokenization.

Other Key Points

• The corporate name changed from Wellgistics Health, Inc. to DataMeds AI, Inc. in July 2026, with the stock symbol changing from 'WGRX' to 'MEDS' on NASDAQ Capital Markets.
• The company raised $6.5 million in new funding in June 2026 to support a corporate turnaround.
• The company restructured $14.5 million in pre-existing debt to provide a path to a preferred equity swap.
• Holders of 1,533,930 common shares, representing approximately 49% of shares outstanding, entered into lock-up agreements for at least 90 additional days.
• Brett Thompson was appointed as Chief Technology Officer in the third quarter of 2026.
• The Dream Bowl Meme Coin I token distribution payment date is set for September 9, 2026, with a ratio of 50 tokens per common share owned as of August 7, 2026.
• The company updated Datavault Transaction terms for tax optimization.
• Interim co-CEO Gerald Commissiong was featured on Fox Business with NFL Legend Emmitt Smith to discuss NFLAH support for the Health Lives Here app.